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Matt · 10-12-2008, 04:15 PM

Quote:

Xploited: Secrets of the winner's '£1million contract'

The winner of X Factor does not receive an upfront £1million record deal, the Mirror reveals today.

Instead, the top act gets an advance of £150,000 for a first album – out of which their expenses must be paid.

A copy of the 80-page contract which all finalists had to sign before the Saturday night live shows has been seen by the Mirror.

Each was told by legal firm Michael Simkins on September 29 to read it “carefully”.

The contract has hundreds of clauses, one of which states it to be enforceable anywhere “in the world and solar system”.

Clause 32.4 says artists must not make any statement which “may be considered unduly negative, critical or derogatory of the Company – including its personnel and, in particular, Simon Cowell”.

A music industry source said: “The contract makes clear no one can speak badly of X Factor supremo Simon. It is hilarious. He must be ultra-paranoid.”

The winner of the record deal could even be left with little of the £150,000 when costs are accounted for.

The only chance of hitting the £1million mark is several years down the line – after at least four albums.

But a source said: “Even then, chances are they will never see that sort of money.

“For presenter Dermot O’Leary to say in front of 13 million viewers the winner gets this sort of deal is slightly misleading to say the least.” Industry experts who have seen the contract claim it is “very” restrictive.

And we can reveal that one of the finalists already booted out this year is seeking legal advice behind the back of X Factor bosses to get out of the contract.

Speaking to the Mirror through a friend, the finalist said: “You have to sign all the agreements before being allowed in the final.

“After being kicked off, you’re under contract to Cowell’s label for up to three months, even if they’ve no interest in you. Other record labels won’t touch you until the deal is over, and then interest may have waned.”

The Mirror spoke to a handful of promoters who have advised former X Factor acts to misbehave and force Sony BMG to end their contracts. One said: “Developing a reputation as a troublemaker can sometimes force a label to drop you.”

The winning act gets 15 per cent from single and album sales. Headlining a tour brings 7.5 per cent of show profits and 15 per cent of merchandise sales.

They also have to sign with agent Modest Management in a deal having the potential to last 14 years.

The record label has “final say” over tracks for albums, and can choose producers and single releases.

Finalists are expected to sign the complicated contract in just three days.

An X Factor spokesman said: “It's not a £1million prize – it’s a record deal. The £1million figure includes the recording costs, using the best producers, and marketing costs using the best video directors. We would say £1million is a very conservative figure.”

Saturday’s final on ITV1 is between Alexandra Burke, JLS and Eoghan Quigg.

Clause 38.4

Artists booted off the show have to fork out five per cent of all future live earnings to Cowell for a year.

Clause 6.1.1

Winner gets £150k advance, 2nd gets £75k, 3rd £50k and 4th £10k.

Clause 36.4

You can only sing in pubs for three months after last show – unless gig is being recorded.

Clause 1.41

Contract enforceable anywhere in the world and solar system.

Clause 32.4

Artists must not without consent make any statement which may be considered unduly negative, critical or derogatory of the Company – including its personnel and, in particular, Simon Cowell.

Source: The Mirror